Jailtime for Fronting!
News within the B-BBEE community (and South African Business) has lately been dominated by articles discussing fronting and recent strides being made by the B-BBEE commission in clamping down on unlawful transactions, specific to the ownership element. In a recent article Busisiwe Ngwenya, the executive manager for compliance at the B-BBEE Commission, advised delegates that when signing contracts to consult someone who will be able to explain the terms in their simplest form, so as to eliminate chances of being exploited. Ownership must have voting rights, economic interest and net value! Fronting, which is a misrepresentation of a company’s BEE status, has been criminalised by the BEE act and perpetrators could face jail time of up to 10 years in prison and/or a fine of up to 10% of a company’s turnover. If you would like advice on your company’s current BBE transactions, or need assistance in any pending BEE ownership deals, please feel free to get in contact with us. Upcoming workshops include:
- Full Day BEE Workshop including the Amendments to the B-BBEE Codes (Facilitated by our CEO) – 18 Jul (JHB), 27 Aug (DBN), 09 Oct (CT)
- Half Day BEE Workshop – 16 Jul (CT), 23 Jul (DBN), 27 Aug (JHB)
- 2 Hour YES Workshop – 17 Jul (CT), 24 Jul (DBN), 06 Aug (JHB)